0001140361-19-001495.txt : 20190124 0001140361-19-001495.hdr.sgml : 20190124 20190124160542 ACCESSION NUMBER: 0001140361-19-001495 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190124 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190124 DATE AS OF CHANGE: 20190124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STRATTEC SECURITY CORP CENTRAL INDEX KEY: 0000933034 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 391804239 STATE OF INCORPORATION: WI FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25150 FILM NUMBER: 19540056 BUSINESS ADDRESS: STREET 1: 3333 WEST GOOD HOPE ROAD CITY: MILWAUKEE STATE: WI ZIP: 53209 BUSINESS PHONE: 4142473333 MAIL ADDRESS: STREET 1: 3333 W GOOD HOPE ROAD CITY: MILWAUKEE STATE: WI ZIP: 53209 8-K 1 form8k.htm 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
__________________

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 24, 2019

STRATTEC SECURITY CORPORATION
(Exact name of registrant as specified in charter)

Wisconsin
(State or other jurisdiction of incorporation)

0-25150
  
39-1804239
(Commission File Number)
  
(I.R.S. Employer I.D. Number)

3333 West Good Hope Road
Milwaukee, WI
  
 
53209
(Address of Principal Executive Offices)
  
(Zip Code)

(414) 247-3333
(Registrant's telephone number; including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company           ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition.

On January 24, 2019, STRATTEC SECURITY CORPORATION issued a press release (the "Press Release") announcing results for the fiscal second quarter ended December 30, 2018. A copy of the Press Release is attached as Exhibit 99.1 to this report. The attached Exhibit 99.1 is furnished pursuant to Item 2.02 of Form 8-K.

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filing.

Section 9 - Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 ‑‑ Press Release of STRATTEC SECURITY CORPORATION, issued January 24, 2019.
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 
STRATTEC SECURITY CORPORATION
Date: January 24, 2019
    
 
By:
/s/ Patrick J. Hansen
   
Patrick J. Hansen, Senior Vice President and
   
Chief Financial Officer


EX-99.1 2 ex99_1.htm EXHIBIT 99.1
 
Exhibit 99.1

FOR RELEASE AT 3:00 PM CDT

Contact: Pat Hansen
Senior Vice President and
Chief Financial Officer
414-247-3435
www.strattec.com

STRATTEC SECURITY CORPORATION

REPORTS FISCAL 2019 SECOND QUARTER OPERATING RESULTS

AND PENSION SETTLEMENT CHARGE

Milwaukee, Wisconsin – January 24, 2019 -- STRATTEC SECURITY CORPORATION (NASDAQ:STRT) today reported operating results for the fiscal second quarter ended December 30, 2018 and a $32.4 million non-cash pre-tax pension settlement charge that reduced diluted earnings per share in the current year quarter by $6.67. Without the charge adjusted diluted earnings per share in the current year quarter would have been $0.71.

Net sales for the Company’s fiscal second quarter ended December 30, 2018 were $112.9 million, compared to net sales of $103.2 million for the prior year quarter ended December 31, 2017. Net loss for the current year quarter was $22.2 million, compared to net income of $2.9 million in the prior year quarter. Diluted loss per share for the current year quarter was $5.96 compared to diluted earnings per share of $0.78 in the prior year quarter.
 

Exhibit 99.1

During the current year quarter, the Company completed a substantial portion of terminating the STRATTEC Pension Plan that was frozen on December 31, 2009. A non-cash pre-tax pension settlement charge of $32.4 million was recorded during the current year quarter ($24.8 million or $6.67 diluted per share after tax). A remaining non-cash compensation expense charge of approximately $8 million on a pre-tax basis (approximately $6.1 million after tax) is expected to be recorded in future periods when the Plan is fully terminated and the excess Plan assets are transferred to a STRATTEC defined contribution plan and subsequently paid out.

For the six months ended December 30, 2018, net sales were $230.1 million compared to net sales of $205.6 million during the prior year six month period. Net loss during the current year six month period was $18.7 million compared to net income of $5.3 million during the prior year six month period. Diluted loss per share was $5.03 for the current year six month period ended December 30, 2018 compared to diluted earnings per share of $1.44 for the prior year six month period ended December 31, 2017. As previously described, the non-cash pre-tax settlement charge of $32.4 million or $24.8 million after tax impacted the six month results ended December 30, 2018. See the following table for further explanation.

STRATTEC SECURITY CORPORATION

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES TO GAAP PERFORMANCE MEASURES

(in thousands, except share and earnings per share data)

   
Three Months Ended
    
Six Months Ended
  
   
December 30,
    
December 31,
    
December 30,
    
December 31,
  
   
2018
    
2017
    
2018
    
2017
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Net (loss) income (GAAP measure)
  
$
(22,164
)
  
$
2,882
    
$
(18,697
)
  
$
5,338
  
                                 
Pension termination settlement charge, net of tax
    
24,812
      
-
      
24,812
      
-
  
                                 
Adjusted net income
  
$
2,648
    
$
2,882
    
$
6,115
    
$
5,338
  
                                 
Diluted (loss) earnings per share (GAAP measure)
  
$
(5.96
)
  
$
0.78
    
$
(5.03
)
  
$
1.44
  
                                 
Pension termination settlement charge, net of tax
    
6.67
      
-
      
6.68
      
-
  
                                 
Adjusted diluted earnings per share
  
$
0.71
    
$
0.78
    
$
1.65
    
$
1.44
  
 

Exhibit 99.1

Net sales to each of our customers or customer groups in the current year quarter and prior year quarter were as follows (in millions):

   
Three Months Ended
  
             
   
December 30, 2018
    
December 31, 2017
  
             
Fiat Chrysler Automobiles
  
$
25.7
    
$
22.0
  
General Motors Company
    
23.8
      
21.4
  
Ford Motor Company
    
16.1
      
16.1
  
Tier 1 Customers
    
18.5
      
16.5
  
Commercial and Other OEM Customers
    
21.4
      
19.8
  
Hyundai / Kia
    
7.4
      
7.4
  
TOTAL
  
$
112.9
    
$
103.2
  

The sales to Fiat Chrysler Automobiles in the current year quarter increased compared to the prior year quarter due to higher content on the components we supply on certain vehicles, in particular the Dodge Ram pickup truck. The increase in sales to General Motors Company in the current year quarter was primarily attributed to higher vehicle production volumes and content on products we supply. Sales to Ford Motor Company and Hyundai/Kia in the current year quarter were flat compared to the prior year quarter. Sales to Tier 1 Customers increased in the current year quarter due to higher production volumes. Sales to Commercial and Other OEM Customers during the current year quarter increased in comparison to the prior year quarter mainly due to new customer programs at Volkswagen. These customers, along with the Tier 1 Customers, primarily represent purchasers of vehicle access control products such as latches, fobs, driver controls and door handles, that we have developed in recent years to complement our historic core business of locks and keys.
 

Exhibit 99.1

The gross profit margins were 11.3 percent in the current year quarter compared to 12.3 percent in the prior year quarter. The decrease in gross profit margin in the current year quarter compared to the prior year quarter was attributed to a continuation from our previous quarter of higher production and expediting costs associated with new product launches occurring in fiscal year 2019 and to changes in product mix. The gross profit margins in the current year quarter were positively impacted by a favorable Mexican Peso to U.S. Dollar exchange rate affecting our operations in Mexico.

Engineering, Selling and Administrative expenses as a percentage of net sales decreased to 9.3 percent in the current year quarter from 9.8 percent in the prior year quarter.

Included in “Other Income, Net” in the current year quarter compared to the prior year quarter were the following items (in thousands of dollars):

   
December 30,
    
December 31,
  
   
2018
    
2017
  
             
Equity Earnings of VAST LLC Joint Venture
  
$
1,487
    
$
1,404
  
Equity (Loss) Earnings of STRATTEC Advanced Logic LLC Joint Venture
    
(11
)
    
69
  
Net Foreign Currency Transaction Gain (Loss)
    
277
      
(64
)
Other
    
(539
)
    
173
  
   
$
1,214
    
$
1,582
  

Frank Krejci, President and CEO commented: “I am very pleased, that after years of planning and effort, in this quarter we took the major step of contractually transferring our pension obligations to an insurance company, and did so without having to contribute any additional funds. Some companies are struggling with, or even worse, deferring focus on the enormous problem of unfunded pension liabilities. We have now eliminated that liability and its attendant risks from STRATTEC’s financial future.
 

Exhibit 99.1

We believe that we have created significant shareholder value by eliminating the risk of stock market volatility affecting our pension assets. If there is a downturn in the economy and the stock market, we no longer need to worry about having to make pension contributions when we may be least able to afford them. This is a very positive achievement, despite the ugly pension accounting treatment associated with a transaction of this type, and well worth the non-cash accounting hit in this quarter.”

STRATTEC designs, develops, manufactures and markets automotive Access Control Products, including mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles and related products. These products are provided to customers in North America, and on a global basis through a unique strategic relationship with WITTE Automotive of Velbert, Germany and ADAC Automotive of Grand Rapids, Michigan. Under this relationship, STRATTEC, WITTE and ADAC market our companies' products to global customers under the “VAST” brand name. STRATTEC’s history in the automotive business spans over 110 years.

Certain statements contained in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” and “would.” Such forward-looking statements in this release are inherently subject to many uncertainties in the Company’s operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company’s and its customers’ products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and customer product recall policies, foreign currency fluctuations, uncertainties stemming from U.S. trade policies, tariffs and reaction to same from foreign countries and costs of operations (including fluctuations in the cost of raw materials). Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this release. In addition, such uncertainties and other operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission.
 

Exhibit 99.1

Non-GAAP Financial Measures

This press release contains financial measures not prepared in accordance with generally accepted accounting principles (referred to as Non-GAAP), specifically “adjusted net income” and “adjusted diluted earnings per share.” “Adjusted net income” is defined as net (loss) income attributable to STRATTEC SECURITY CORPORATION shareholders excluding the pension termination settlement charge, net of tax. “Adjusted diluted earnings per share” is defined as “Adjusted net income” divided by average diluted shares of common stock outstanding. The Company believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating STRATTEC’s performance and are important measures by which STRATTEC’s management is able to assess the profitability and liquidity of STRATTEC’s business. These Non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net income (loss) as a measure of operating performance. These Non-GAAP measures may be different than Non-GAAP financial measures used by other companies.
 

Exhibit 99.1

STRATTEC SECURITY CORPORATION
Condensed Results of Operations
(In Thousands except per share amounts)
(Unaudited)

   
Second Quarter Ended
    
Six Months Ended
  
   
December 30, 2018
    
December 31, 2017
    
December 30, 2018
    
December 31, 2017
  
                         
Net Sales
  
$
112,913
    
$
103,182
    
$
230,072
    
$
205,642
  
                                 
Cost of Goods Sold
    
100,177
      
90,536
      
202,153
      
179,533
  
                                 
Gross Profit
    
12,736
      
12,646
      
27,919
      
26,109
  
                                 
Engineering, Selling & Administrative Expenses
    
10,470
      
10,152
      
21,501
      
20,194
  
                                 
Income from Operations
    
2,266
      
2,494
      
6,418
      
5,915
  
                                 
Interest Income
    
-
      
3
      
-
      
7
  
                                 
Interest Expense
    
(404
)
    
(253
)
    
(811
)
    
(456
)
                                 
Pension Termination Settlement Charge
    
(32,434
)
    
-
      
(32,434
)
    
-
  
                                 
Other Income, Net
    
1,214
      
1,582
      
1,878
      
2,695
  
                                 
(Loss) Income Before (Benefit) Provision for Income Taxes and Non-Controlling Interest
    
(29,358
)
    
3,826
      
(24,949
)
    
8,161
  
                                 
(Benefit) Provision for Income Taxes
    
(7,760
)
    
(9
)
    
(7,780
)
    
1,057
  
                                 
Net (Loss) Income
    
(21,598
)
    
3,835
      
(17,169
)
    
7,104
  
                                 
Net Income Attributable to Non-Controlling Interest
    
(566
)
    
(953
)
    
(1,528
)
    
(1,766
)
                                 
Net (Loss) Income Attributable to STRATTEC SECURITY CORPORATION
  
$
(22,164
)
  
$
2,882
    
$
(18,697
)
  
$
5,338
  
                                 
(Loss) Earnings Per Share:
                                
Basic
  
$
(6.03
)
  
$
0.79
    
$
(5.10
)
  
$
1.47
  
Diluted
  
$
(5.96
)
  
$
0.78
    
$
(5.03
)
  
$
1.44
  
                                 
Average Basic Shares Outstanding
    
3,675
      
3,631
      
3,663
      
3,621
  
                                 
Average Diluted Shares Outstanding
    
3,718
      
3,715
      
3,715
      
3,698
  
                                 
Other
                                
Capital Expenditures
  
$
5,433
    
$
6,778
    
$
9,402
    
$
14,349
  
Depreciation & Amortization
  
$
4,076
    
$
3,572
    
$
8,123
    
$
6,667
  
 

Exhibit 99.1

STRATTEC SECURITY CORPORATION
Condensed Balance Sheet Data
(In Thousands)

   
December 30, 2018
    
July 1, 2018
  
   
(Unaudited)
        
             
ASSETS
            
Current Assets:
            
Cash and cash equivalents
  
$
11,373
    
$
8,090
  
Receivables, net
    
67,256
      
73,832
  
Inventories, net
    
47,988
      
46,654
  
Other current assets
    
19,707
      
22,527
  
Total Current Assets
    
146,324
      
151,103
  
Investment in Joint Ventures
    
22,989
      
22,192
  
Other Long Term Assets
    
11,732
      
17,338
  
Property, Plant and Equipment, Net
    
117,793
      
116,542
  
   
$
298,838
    
$
307,175
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts Payable
  
$
35,652
    
$
38,439
  
Other
    
30,272
      
30,354
  
Total Current Liabilities
    
65,924
      
68,793
  
Accrued Pension and Post Retirement Obligations
    
2,338
      
2,379
  
Borrowings Under Credit Facility
    
46,000
      
51,000
  
Other Long-term Liabilities
    
819
      
1,757
  
Shareholders’ Equity
    
316,374
      
331,375
  
Accumulated Other Comprehensive Loss
    
(18,648
)
    
(33,439
)
Less: Treasury Stock
    
(135,758
)
    
(135,778
)
Total STRATTEC SECURITY CORPORATION Shareholders’ Equity
    
161,968
      
162,158
  
Non-Controlling Interest
    
21,789
      
21,088
  
Total Shareholders’ Equity
    
183,757
      
183,246
  
   
$
298,838
    
$
307,175
  
 

Exhibit 99.1

STRATTEC SECURITY CORPORATION
Condensed Cash Flow Statement Data
(In Thousands)
(Unaudited)

   
Second Quarter Ended
    
Six Months Ended
  
   
December 30, 2018
    
December 31, 2017
    
December 30, 2018
    
December 31, 2017
  
                         
Cash Flows from Operating Activities:
                        
Net (Loss) Income
  
$
(21,598
)
  
$
3,835
    
$
(17,169
)
  
$
7,104
  
Adjustments to Reconcile Net (Loss) Income to Cash Provided by Operating Activities:
                                
Pension Settlement Charge
    
32,434
      
-
      
32,434
      
-
  
Equity Earnings in Joint Ventures
    
(1,476
)
    
(1,473
)
    
(2,385
)
    
(2,499
)
Depreciation and Amortization
    
4,076
      
3,572
      
8,123
      
6,667
  
Foreign Currency Transaction (Gain) Loss
    
(359
)
    
(556
)
    
69
      
(419
)
Unrealized Loss (Gain) on Peso Forward Contracts
    
132
      
821
      
(93
)
    
1,079
  
Deferred Income Taxes
    
(7,759
)
    
(1,710
)
    
(8,131
)
    
(1,710
)
Stock Based Compensation Expense
    
241
      
250
      
626
      
621
  
Change in Operating Assets/Liabilities
    
6,518
      
(4,027
)
    
6,532
      
(9,772
)
Other, net
    
(284
)
    
(28
)
    
(284
)
    
(33
)
                                 
Net Cash Provided by Operating Activities
    
11,925
      
684
      
19,722
      
1,038
  
                                 
Cash Flows from Investing Activities:
                                
Repayment of Loan to Joint Venture
    
-
      
150
      
-
      
150
  
Additions to Property, Plant and Equipment
    
(5,433
)
    
(6,778
)
    
(9,402
)
    
(14,349
)
Proceeds Received on Sale of Property, Plant and Equipment
    
12
      
2
      
12
      
2
  
Net Cash Used in Investing Activities
    
(5,421
)
    
(6,626
)
    
(9,390
)
    
(14,197
)
                                 
Cash Flow from Financing Activities:
                                
Borrowings on Line of Credit Facility
    
-
      
6,000
      
2,000
      
18,000
  
Payments on Line of Credit Facility
    
(5,000
)
    
-
      
(7,000
)
    
(2,000
)
Dividends Paid to Non-Controlling Interest of Subsidiary
    
(200
)
    
-
      
(984
)
    
(2,017
)
Dividends Paid
    
(515
)
    
(509
)
    
(1,029
)
    
(1,017
)
Exercise of Stock Options and Employee Stock Purchases
    
49
      
165
      
72
      
190
  
                                 
Net Cash (Used in) Provided by Financing Activities
    
(5,666
)
    
5,656
      
(6,941
)
    
13,156
  
                                 
Effect of Foreign Currency Fluctuations on Cash
    
190
      
173
      
(108
)
    
27
  
                                 
Net Increase (Decrease) in Cash & Cash Equivalents
    
1,028
      
(113
)
    
3,283
      
24
  
                                 
Cash and Cash Equivalents:
                                
Beginning of Period
    
10,345
      
8,498
      
8,090
      
8,361
  
End of Period
  
$
11,373
    
$
8,385
    
$
11,373
    
$
8,385
  


GRAPHIC 3 logo1.jpg begin 644 logo1.jpg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